It was a bit of a mixed day for big tech – with the two cornerstones of the digital world, Microsoft (MSFT, $251,90) and Alphabet (GOOGL, $105,02) announcing their earnings reports. 

Microsoft posted the fourth quarter of its 2022 financial results on Tuesday reporting revenue of $51.9 billion and a net income of $16.7 billion. Revenue came in at $51.9bn (£43.1bn), which was up 12% from last year., and net income increased by just 2%. While revenue was up, Microsoft saw some of its core businesses, including Windows and Xbox, start to slip. Analysts had been forecasting $2.29 per share and revenue of $52.94bn (£44bn), according to FactSet. Microsoft blamed "evolving macroeconomic conditions and other unforeseen items" for its financial performance. It cited supply challenges in China due to strict COVID-19 lockdowns, a deteriorating personal computer market, and the winding down of its operation in Russia as a reaction to that country's invasion of Ukraine.

Alphabet, meanwhile, had a more positive showing, with revenue nearly in line with analysts' expectations. Alphabet reported second-quarter revenue of $69.69bn, 13% higher than same period a year ago and nearly in line with the average expectation of $69.88bn among investment researchers tracked by Refinitiv. The news heartened Wall Street, with shares up 3% after hours. Overall profit was $16bn (£13.3bn) – or $1.21 per share, below the average estimate of $1.29. Currency fluctuations from a strengthening dollar knocked 3.7 percentage points off revenue growth, CFO Ruth Poratt said the strength of the dollar will hit next quarter’s results even harder.